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Article
Publication date: 1 August 2002

Stefan C. Wolter and André Zbinden

Labour market expectations and especially wage expectations are important determinants for individual schooling decisions. However, research on individual expectations of students…

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Abstract

Labour market expectations and especially wage expectations are important determinants for individual schooling decisions. However, research on individual expectations of students is scarce. The paper presents the Swiss results of a survey that was conducted in ten European countries. Its main findings are that point estimates of wages after graduation are close to actual wages, whereas the expectations of the wage gain in the first ten years of professional experience exceed the actual wage gains significantly. We find that rates of return to education that are calculated on the basis of individual wage and cost expectations as well as individual time preferences can be explained partially by the seniority of students, the self‐perception of their academic performance and their subjective job perspectives.

Details

International Journal of Manpower, vol. 23 no. 5
Type: Research Article
ISSN: 0143-7720

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